Correlation Between Milkyway Chemical and New China
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By analyzing existing cross correlation between Milkyway Chemical Supply and New China Life, you can compare the effects of market volatilities on Milkyway Chemical and New China and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Milkyway Chemical with a short position of New China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Milkyway Chemical and New China.
Diversification Opportunities for Milkyway Chemical and New China
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Milkyway and New is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Milkyway Chemical Supply and New China Life in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New China Life and Milkyway Chemical is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Milkyway Chemical Supply are associated (or correlated) with New China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New China Life has no effect on the direction of Milkyway Chemical i.e., Milkyway Chemical and New China go up and down completely randomly.
Pair Corralation between Milkyway Chemical and New China
Assuming the 90 days trading horizon Milkyway Chemical Supply is expected to under-perform the New China. But the stock apears to be less risky and, when comparing its historical volatility, Milkyway Chemical Supply is 1.71 times less risky than New China. The stock trades about -0.04 of its potential returns per unit of risk. The New China Life is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 4,830 in New China Life on September 4, 2024 and sell it today you would earn a total of 47.00 from holding New China Life or generate 0.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Milkyway Chemical Supply vs. New China Life
Performance |
| Timeline |
| Milkyway Chemical Supply |
| New China Life |
Milkyway Chemical and New China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Milkyway Chemical and New China
The main advantage of trading using opposite Milkyway Chemical and New China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Milkyway Chemical position performs unexpectedly, New China can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in New China will offset losses from the drop in New China's long position.| Milkyway Chemical vs. New China Life | Milkyway Chemical vs. Ming Yang Smart | Milkyway Chemical vs. 159681 | Milkyway Chemical vs. 159005 |
| New China vs. Aurora Optoelectronics Co | New China vs. Leyard Optoelectronic | New China vs. TongFu Microelectronics Co | New China vs. Weihai Honglin Electronic |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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